BALANCE SHEET
The statement in which the assets liability and capital is recorded are known as the balance sheet. Every business has assets and liabilities. A balance sheet gives an overview of the total assets liabilities and the shareholder equity of the business at the end of a financial year. There are list of the assets and liabilities of the business. Assets usally include cash account receivables cash equivalent and inventory. The other side includes the liability such as debts, long term debts ,dividend etc. The difference between the total assets and the total liabilities is known as the shareholder equity. A balance sheet is a document for investors and other stakeholder to get an idea of financial health of an organization. It enables to compare current assets and liabilities to determine the business liquidity and calculate the returns of the company.
